Employer of Record (EOR) in Romania

Employer of Record: Understanding the Concept

An employer of record is a company that provides employment services on behalf of another company. The employer of the record assumes legal responsibility for employment management and administers payroll, taxes, and benefits. This arrangement allows the client company to focus on its business operations without worrying about HR management.

What Is a Global Employer of Record?

A Global Employment Organization (GEO) is a subset of employers of record that perform their duties internationally in several countries worldwide. Global Employers of Record like Acumen International allow clients to rapidly engage with an international workforce and comply with complex labor laws and country-specific tax regulations without having to set up local entities or risk violating local employment laws.

Global Employment Services by Employer of Record in Romania

Romania is attractive for international companies who want to do business in Europe and beyond. However, establishing a permanent business entity in Romania is not always the optimal solution for companies just beginning to explore Romania’s business landscape. Even if a permanent in-country entity is your end goal, you may need to gather a boots-on-the-ground team to help you get things up and running before incorporation.

In either case or if you are an agency representing a corporate client, Acumen International offers a perfect global Employer of Record (EOR) solution for legal and compliant hiring and compensating your workforce in Romania.

Send us your project details here, and we will be happy to employ your international workforce on your behalf in Romania in a fast and cost-effective way.

9 Global Employment Challenges to Consider

As more and more companies expand their operations globally, the challenge of managing a diverse international workforce effectively becomes increasingly essential. This Global Expansion Guide seeks to address four key areas where many companies fail in their attempts at global talent management. With our practical and hands-on solution that addresses all four challenges, your company can avoid these pitfalls, start globalizing fast and efficiently, and become a market leader!

The old saying goes, “The devil is in the details.” And when it comes to expanding your business internationally, this can be painfully true. Before taking the plunge into unfamiliar territory, every little detail must be carefully considered.

As you prepare to expand internationally, it’s crucial to understand how each factor impacts the overall success of your business. Here are some global expansion challenges.:

1. Every country in the world has its own set of unique laws for businesses.
2. The legislative and regulatory landscape is ever-evolving. Keeping track of changes is cumbersome.
3. Global HR Compliance challenges
4. Need to understand and keep track of ever-evolving local labor laws and tax regulations across multiple jurisdictions
5. Need to understand the local labor market
6. Need to understand local business practices pertinent to employment
7. Need to adhere to the company’s global employment policies
8. Need to understand local competition and benchmark against standard business practices
9. Working with different languages, time zones, customs, and cultures

No matter which countries you expand to or what type of operation you open, there are some significant issues you will always have to deal with. 

Global expansion decisions come with a lot of moving parts. The decision to expand internationally can significantly impact your business, so it’s essential to make sure you handle it correctly.

PEO vs. EOR: What’s the Difference Between a PEO & EOR?

Before hiring employees overseas, you should know a few key differences between a Professional Employer Organization (PEO) and an Employer of Record (EOR). While they may seem similar at first glance, they are legally distinct entities with different implications for your business. Understanding the distinction between the two is essential to ensure a smooth and successful international hiring process.

Global PEO and EOR Comparison

Employee Misclassification Risk

Technology companies are always trying to find cheaper and easier ways to expand their business. Using independent contractors to launch in a new country is one solution. While it sounds like a simple solution, and these workers provide flexibility and cost savings, there are more than a few legal and compliance risks that companies need to consider before leaping. One of the most significant risks is misclassifying contractors, leading to severe penalties. The company must be careful not to fall into this trap.

Penalties are harsher than you might think. Suppose contractors working for your business are considered permanent employees and therefore misclassified. In that case, labor authorities will consider them full-time and backdate payroll taxes onto your business and the workers themselves. Getting compliant can be tricky — it requires a lot of effort and time, which costs money. It’s better to take a proactive approach by outsourcing to a reliable Global Employer of Record partner.

20 Benefits of Employer of Record in Romania

The 20 benefits of Global Employer of Record are the following:

1. No need to set up a new entity in every country where you have operations. You are not required to hire local employees or worry about local compliance requirements.
2. The ability to scale your business quickly by hiring employees in multiple countries without having to set up a new entity in each country.
3. A single point of contact for all employment-related questions and concerns.
4. A single point of contact for all tax compliance questions and concerns.
5. No need to worry about managing multiple payroll systems, tax filing requirements
6. No need to draft an employment contract that’s compliant with local regulations
7. No hassle and risk with employee registration for payroll in Romania
8. 100% compliance with all regulations in Romania, including employment, tax, and payroll.
9. Assumed responsibility for monthly payroll administration, preparing payslips, and delivering them to your employees.
10. Any questions related to employment, payroll, and tax that you or your employee may have are addressed timely and comprehensively.
11. Facilitated and well-planned employment termination
12. Facilitated and unified global mobility administration
13. Centralized control over the global workforce
14. Enhanced international employee and employer compliance
15. Proactive global workforce cost management
16. Alignment of global talent with opportunities
17. Advice on favorable tax, benefit, and social security locations
18. Reduced permanent establishment exposure risk
19. Simplified global reward structure and administration
20. Multi-location compliance risk management.

Global EOR (Employer of Record) in Romania: Save Up to 80% of Employee Management Cost

* Per one Employee
** Costs vary from country to country

Spotlight on Romania

Romania is a developing country with a high-income economy. Romania is a member of the European Union.

• Location: Romania is in Europe, bordering the Black Sea, Ukraine, Bulgaria, Serbia, Moldova, and Hungary.
• Capital: Bucharest.
• Currency: New Romanian Leu (RON).
• Official language: Romanian.
• Population: 21,230,362 (2021).
• Labor force: 4.889 million.
• Most developing industries: services, agriculture, and industry with electric machinery and equipment, auto assembly, textiles and footwear, light machinery, metallurgy, chemicals, food processing, petroleum refining, mining, timber, and construction materials.
• Main trading partners: Germany, Italy, and France.
• Minimum statutory salary: Romania has a government-mandated minimum wage. National Minimum Wage from January 2022 is RON 15.24 per hour or RON 2,550.00 per month (being calculated on 168 average working hours per month)
• Thirteenth salary and other additional remunerations: Romania has no statutory requirement for a 13th salary payment.

Employ Your Selected Workforce via Acumen Employer of Record (EOR) in Romania

Acumen’s Employer of Record solution in Romania offers an efficient and inexpensive alternative to your own company setup and direct hiring to meet your global employment needs. Our solution allows companies to operate in Romania and 190 international markets where we serve our clients without registering as a local business entity.

As an Employer of Record services provider, Acumen International helps businesses legally engage and pay their selected highly skilled professionals in Romania. Businesses that want to attract top local talent should plan on offering competitive salaries and benefits.

Acumen International’s EOR in Romania helps employers and service companies representing international clients to hire and compensate local employees in Romania. We offer professional assistance to meet our clients’ global HR needs, such as:

• Global talent acquisition and retention
• Global expansion assistance to help you quickly enter new global markets without legal and HR compliance risks
• Local support for international clients and their expat employees

Legally Onboard and Payroll Employees in Romania with Acumen’s Global Employment Solution

Romania’s employment nuances must be fully observed, like every other country, to ensure 100% compliance. Trust us to handle the global employment and HR side of your workforce management in Romania, so you are sure that none of these nuances are missed and that your employees are employed and payrolled properly and compliantly.

Acumen’s solid global employment solution was designed to help businesses avoid compliance risks and save money by hiring and compensating your local and ex-pat workforce in Romania on your behalf. Our Global Employer of Record (EOR) helps international companies like yours expand globally by engaging the country’s brightest global talent for your projects.

Whether you need to reinforce your internal team with the expertise of local Romanian talent or have already selected a candidate to work remotely from Romania in full legal compliance, our global employment solution is an excellent choice for you.

In addition to legally onboarding Romanian employees, we can help organize work permits, provide business visa sponsorship for your expatriate team, and employ them on your behalf once legal permissions are obtained.

Partner with Acumen International as your primary global Employer of Record services provider, and let us help you manage your overseas employment and HR needs. With Acumen, you can rest assured that all legal requirements are met for compliant hiring and compensating your local and expatriate employees in Romania and 190 countries worldwide where we serve our international clients.